Climate change is rapidly emerging as a threat to the financial stability of your business. More frequent and severe weather events are damaging infrastructure and disrupting supply chains. The transition to a low-carbon economy is bringing new policies, regulations and rapid changes to market dynamics. And some carbon-intensive companies are already facing lawsuits over their contributions to climate change. Together, these trends threaten to impose serious financial risks to companies and their investors, lenders and insurers.
Given the importance of forward-looking assessments of climate-related risks and opportunities, climate scenario analyses are often applied to assess potential business implications of climate-related risks and opportunities.
Understanding your challenges
Climate-related risks are often underestimated by companies because of their long-term effects and their complexity. However, today, many companies are already facing the impact of climate-related risks. For most companies, assessing, disclosing and responding to climate-related risks and seizing the opportunities of climate change are new challenges, but they don’t know exactly where to start. In addition, many banks, pension funds, asset managers, insurers and others have put growing pressure on companies to apply the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and hundreds of companies have signed up to do so.
KPMG supports companies in addressing climate-related risks and opportunities
We support clients in understanding the nature and scale of the climate-related risks and opportunities businesses face, developing robust and insightful climate scenarios to understand the financial implications, and implementing the right strategy to mitigate climate-related risks and seize climate-related opportunities. We support clients in making sense of the TCFD recommendations and the increasing number of climate-related regulations, in order to comply with regulations and to demonstrate companies’ ambition level. Our experts can guide you as you prepare your business to thrive in a low-carbon world.
Our support covers the following areas:
- Identify and map climate-related risks and opportunities across the supply chain;
- Develop and apply a range of climate scenarios to assess business resilience;
- Understand business implications and impact on financial performance;
- Define actions to mitigate and adapt climate-related risks and seize opportunities from climate change;
- Integrate climate risks in business and risk management processes;
- Assess readiness for and improve TCFD and climate reporting to effectively communicate progress to stakeholders, such as investors.
Are you ready to navigate climate risk with confidence?
Understanding and managing the implications of climate change for your business is crucial to navigate in a fast-paced and ever-changing business environment. For more information please contact Anne-Cecile Moreno.